Transcript Slide 1
Gary Butler President & CEO Agenda ADP Overview State of the Global Economy – US – Eurozone – Emerging Markets Our Commitment to Multinationals ADP Overview Two Business Divisions – Employer Services – 86% of total revenue Services range from recruitment to retirement Approximately 525,000 clients 36,000 associates – Dealer Services – 14% of total revenue Services for auto, truck, motorcycle, marine and recreational vehicle dealers. Approximately 25,000 clients 6,400 associates ADP Overview Full Service Provider of HR Outsourcing Services – Payroll – Tax Filing – Benefits Administration – HR Services Largest Provider of HR Services – North America – Europe – Latin America – Pacific Rim $7.8 Billion Revenue for FY ’10 ADP Financial Highlights $ Billion $ EPS 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 2005 2006 2007 2008 2009 Revenues Revenue and EPS have averaged growth rates of 8% and 12% respectively since 2005 2010 2005 2006 2007 2008 EPS* 2009 2010 ADP ES Overview ADP Employer Services Small Business & PEO Services (1-49 employees) Major Accounts (50-999 employees) National Accounts (1000+ employees) International Accounts (all sizes) State of the Global Economy – US Q4 GDP growth higher than expected Stimulus, cuts to government spending Unemployment rate declining Inflation remains tame Consumer Spending up substantially – including Autos BRT December 2010 Survey BRT Releases Fourth Quarter 2010 CEO Economic Outlook Survey State of the Global Economy – EuroZone Stagnating employment growth Productivity offsetting GDP growth Social cost deter new hires Uncertainty weighing on Euro State of the Global Economy – Emerging Markets GDP Growth in BRIC economies strong Global Outlook for MNCs Positive MNCs Outsourcing Adoption Total = 90M Employees Worldwide 50% +80% 28% = 25M Ees Source: BCG, Nov. 2008 = 45M Ees ADP Growth Strategy Strengthen the Core BoB Solutions Grow our differentiated HR BPO offerings Focus on international expansion Enter adjacent markets which leverage our core strategic assets Enable margin growth through continued investments in technology and infrastructure GlobalView and Streamline GlobalView Select Dedicated organization to serve MNCs Conclusion Return-to-Growth story is great – U.S. – Emerging Markets MNC’s poised to reap benefits of ever increasing unification of the global economy ADP’s dedicated approach to MNCs and investment in Global platforms designed to facilitate your success